The CEO of the IAG group, Luis Gallego, outlined the strategic significance of the International Airlines Group for Spain, particularly as capacity levels return to pre-pandemic figures. He highlighted a key opportunity in sustainable aviation fuel (SAF) as a potential driver for Spain, aligning with IAG’s broader goal of reducing environmental impact while supporting growth. PwC’s assessment of the group’s economic footprint shows a contribution of 21.5 billion euros to the Spanish economy and support for about 371,000 jobs, representing roughly 1.7% of GDP and 2% of employment in the country.
IAG’s economic impact across its Iberian holdings is substantial. Iberia and Vueling together contribute about 6.6 billion euros to GDP, while the combined revenue generated by Iberia, Vueling, British Airways, and Aer Lingus supports expenditures by tourists and suppliers totaling approximately 14.9 billion euros. This underscores the strategic role of the group in Spain’s travel and tourism ecosystem and its ripple effects on related industries.
Gallego stressed the importance of the Air Europa acquisition as a move to strengthen Madrid’s airport position in competition with Northern Europe’s major hubs. He described the deal as a long-term strategic surgery that began years ago and was completed in a revised form after the pandemic disrupted the original plan. The aim is to enhance Madrid as a central aviation hub for Spain, with potential remedies and competitive measures discussed as part of regulatory considerations. The possibility that Ryanair could participate as part of a broader competitive landscape was also acknowledged as a factor in the equation, reflecting the dynamic nature of alliance and competition in European air travel.
The acquisition closed in February at around 500 million euros, a figure reduced from the initial agreement four years earlier. Gallego noted ongoing discussions with Brussels and signaled a proactive approach in presenting potential concessions to the European Commission to support the operation while maintaining competitive balance in the market.
In parallel with the Spain-focused strategy, IAG does not rule out opportunities involving TAP, the main airline in Portugal, which is the subject of partial privatization by the neighboring government. The group indicated that any involvement would depend on alignment with strategic objectives and customized conditions. If the arrangement proves advantageous, IAG would pursue it, always prioritizing long-term profitability and network value for the group.
The emphasis on network expansion is clear: strengthening access to Lisbon is viewed as a stepping stone to broaden the group’s reach in the region. The strategic logic also contemplates expanding into markets where IAG already has a footprint, including Brazil and certain African countries, with the aim of complementing and reinforcing existing routes within the IAG network. This approach is framed around the potential for added value and better connectivity rather than merely a geographic footprint expansion.
Within Spain, IAG’s four airlines served approximately 58 million passengers, split into 36 million international travelers and 22 million domestic travelers, across 30 airports nationwide. The group operated about 566 routes spanning 56 countries, illustrating a broad and dense network that supports both outbound tourism and domestic mobility. Globally, IAG handled around 118.7 million passengers on 1,076 routes, with 90.7 million travelers in 2019 engaging international itineraries predominantly linked to Spain, the United Kingdom, and Ireland. Within the group, British Airways led with about 48.2 million passengers, Iberia followed with 24.4 million, Avianca and Iberia Express contributed to the mix, and other IAG brands supported a diverse, multi-market footprint. This constellation of routes and traffic underlines IAG’s pivotal role in connecting Spain to the world and in enabling robust tourism and business travel flows that benefit the national economy and regional partners alike.